Consumers are using their mobile devices for a variety of purposes. Trends predict that mobile usage will continue to increase at alarming rates for the foreseeable future. Business and consumer transactions are regularly occurring away from the traditional desktop, office, and brick-and-mortar retail environments.
Presently, little security is focused on these transactions. In large part, confidential information between mobile devices takes place through a text message with a link or typed key from one device to the other. Assuming each party properly shields his/her mobile display from nearby prying eyes, the transaction may be relatively secure (this also assumes that one of the mobile devices is not stolen or otherwise compromised to maintain security).
The potential for security breaches are also more likely when a consumer authenticates at an ATM or other public Point-Of-Sale (POS) device and is required to enter a PIN. The ATM or POS may have a skimmer or may have others nearby who can visually detect or use technical devices (cameras, microphones, etc.) to detect the entered PIN.
Moreover, any time a mobile device needs to communicate with a secure backend-server or any other secure device (not just an ATM or POS), the need for improved security from what presently is available in the industry is needed. This is so because the mobile device may be compromised and expose the other device to which the mobile device connects to security vulnerabilities.
Therefore, there is a need for improved information passing and authentication.